WonderFi Technologies Inc (NEO:WNDR)(OTC:WONDF) is a technology company that gives individuals access to financial services through DeFi. The company’s mission is to make the DeFi world more accessible and improve the user experience. With the WonderFi app, anyone with a mobile phone can access DeFi, regardless of their background or industry experience.
On January 4, WonderFi announced that it has signed a deal to acquire First Ledger Corp., the parent company of Bitbuy Technologies Inc., Canada’s first approved crypto marketplace with over $4.4 billion transacted. The purchase price is approximately C$206 million ($162.13 million), giving it full ownership of the Canadian crypto market. Bitbuy recently ranked 9th in the Deloitte Technology Fast 50™ program thanks to a 3,379% increase in revenue growth from 2017 to 2020, making it the highest-ranking crypto asset trading platform amongst the Fast 50 winners. The company is also revenue-generating, bringing in over $3.1 million in the twelve months ended September 30, 2021.
The acquisition and integration will make WonderFi a leading end-to-end consumer platform for people seeking access to crypto and decentralized finance. Significant revenue and cost synergies are expected through user base integration, cross-selling services, and combined global offering. The deal will give WonderFi access to Toronto-based Bitbuy’s more than 375,000 users.
“The integration of WonderFi and Bitbuy is a huge step forward in our mission of democratizing finance through easy and secure access to DeFi and crypto. A licensed marketplace serves as a crucial gateway to the digital asset economy, and facilitates a robust end-to-end, unified client experience. The integration of Bitbuy’s product suite will accelerate and expand the reach and scope that WonderFi can offer to the market, and will drive long-term growth and value for the Company,” said WonderFi CEO Ben Samaroo.
In December, WonderFi also acquired all of the issued and outstanding shares of Mena Software Ltd. (Crypto APIs), a data and wallet provider that serves customers such as Paypal, Ledger, Chainlink and Nexo. Crypto APIs was founded in 2018 and is one of the leading providers of cryptocurrency and blockchain market data and tools that are used by a wide range of market players including businesses, wallets, stock exchanges and institutional investors.
Also in December, WonderFi published its 2021 year-end financial results for the year ended September 30, 2021. Cash reserves and crypto holdings totaled C$49.7 million post-October financing. Total assets as of September 30 were C$25.4 million, including C$20.3 million in cash and C$4.1 million in crypto assets. Net cash used in operating activities (total cash burn) was C$2.7 million, while total loss and comprehensive loss amounted to C$5.1 million for the year.
WonderFi Announces Upsized $45 Million Financing to Pursue Growth Initiatives
WonderFi has continued to draw investor interest, completing multiple financings over the last year to help fund these strategic acquisitions. On January 13, the company announced an increase in the size of its previously announced bought deal public offering led by Canaccord Genuity Corp. The offer consists of an aggregate of 18,750,000 units at a price of $2.40 per unit for aggregate gross proceeds of approximately $45 million. WonderFi plans to use the proceeds to partially fund the acquisition of First Ledger Corp. and additional growth initiatives.
Some of the potential uses for WonderFi’s growing bankroll could include user acquisition for the desktop app once it launches and acceleration for the launch of the mobile apps.
